Q.
When I have set up protection for a directory, I can get in with Internet Explorer
when it prompts me for the Username and Password.
However when I use Netscape, I type in the Username and Password, then it gives me another
dialog to type in the username/password, this time with no Realm. When I cancel out it says
"Error - access denied".

A.
Looks like the directory is protected with NTFS. IE will use your login name behind your back
(especially if you are on the same machine or local network) to let you in.
Use Netscape Navigator and try to access
the directory without any protection with the software. Free up the permissions on
that directory so that Netscape can get in. Then put the software protection
back. That should fix you up.